Buying a new home vs. an old home: What are the benefits? (neighborhood, yard)

[Slowink]

If You do go new, think about SIP (structual Insulated panel). If your able to use a hammer and screw gun, they can cost about the same for material, but the labor is way less, and that's what you pay the most for. I did alot of my own work and I am real pleased the way it turned out. You just have to be real careful of the people you hire to finish it.

[Beware_of_Dog]

Not sure if anyone has said this, but I read when I was younger what a very wealthy man said: that if you ever want to be well off, you will always buy new residential homes and used family cars. The theory being that new homes will appreciate more and used cars will depreciate less. That always made sense to me.

[khuntrevor]

Lots of the newer homes are built on the expansive clay soil that wreaks havoc on foundations. In the most recent bloodbath, the new homes were hurt just as much as the older ones, if not more. The older homes were built by much more educated Americans, the newer ones were stapled and sprayed together by someone from a third world country. The homebuilders aren't going to be happy until people are again buying brand new homes in the exhurbs with all the extras, on cheap land, where it is easy to get the local governments in on the action. It puts a lot of money in their pockets.

[Captain Bill]

Originally Posted by Beware_of_Dog

Not sure if anyone has said this, but I read when I was younger what a very wealthy man said: that if you ever want to be well off, you will always buy new residential homes and used family cars. The theory being that new homes will appreciate more and used cars will depreciate less. That always made sense to me.

One thing to consider is that when buying a home in a new subdivision that is not built out, if you have to sell the home while the builder is still selling, it will be difficult. You cannot compete with the builder.

[Jukesgrrl]

Back east, the newest home I ever bought was built in 1927. But here in Arizona, it's not quite the same thing. Newer homes are usually much more cost effective for utilities and insurance, and are often in safer neighborhoods. Also, here I would never buy a home that didn't have some kind of homeowner association. In other places, zoning regulations and city laws traditionally offer some protection from crazy things your neighbor might want to do. But in Arizona, all bets are off. If your neighbor wants to breed pit bulls, repair cars in his front yard, or have 15 kids in a three bedroom house, the HOA is the only thing standing between you and that. Some people are OK with that, but I'm not one of them.

[Ponderosa]

Originally Posted by Jukesgrrl

Back east, the newest home I ever bought was built in 1927. But here in Arizona, it's not quite the same thing. Newer homes are usually much more cost effective for utilities and insurance, and are often in safer neighborhoods. Also, here I would never buy a home that didn't have some kind of homeowner association. In other places, zoning regulations and city laws traditionally offer some protection from crazy things your neighbor might want to do. But in Arizona, all bets are off. If your neighbor wants to breed pit bulls, repair cars in his front yard, or have 15 kids in a three bedroom house, the HOA is the only thing standing between you and that. Some people are OK with that, but I'm not one of them.

That is simply not factual. All cities in the Phoenix area have zoning restrictions and most, if not all, have blight ordinances. In some cases these can be even more restrictive than HOA regulations, though HOAs are notorious for regulating the most minor details of ones life. The problem comes in enforcement. HOAs are "above the law" in a sense and can inflict financial pain on violators much easier than cities can. Also, HOAs generally have a cadre of snitches and street riders who go around looking for violations to report. Cities don't have the money to do much enforcement.

[khuntrevor]

The two blight reports I filed, online, with the City of Phoenix, were handled promptly with a high level of professionalism. They will fine the Federal Government, if they are the owner of the blighted property and refuse to comply. REPORT A BLIGHTED PROPERTY (http://www.phoenix.gov/EMAIL/appblght.html - broken link)
I think in many instances, the HOAs are hurting worse than the cities.

[Captain Bill]

Originally Posted by Ponderosa

...HOAs generally have a cadre of snitches and street riders who go around looking for violations to report...

I like that Ponderosa. I'll have to suggest to our board (of which I'm a member) that we should solicit a cadre of snitches and street riders. Then we won't have to pay the property manager to do compliance inspections.

Seriously, when a resident reports a violation they must give their name and lot number, and that name is to be reported to the person who gets the violation. They cannot anonymously report violations.

What actually happens today in most cases is that the property manager assigned to the community by the property management company, does weekly inspections of the property to check the condition of all the community property, such as gates, fences, trees, parks, etc, and also does compliance inspections. It's that person who notes and writes the violations.

[azriverfan.]

I've had both and while it may be a cliche, I advise on buying a new home. Even the best products ultimately break down and need to be replaced over time. If I had my choice, I would rather buy a new home without a pool than an older home with a pool. Swimming pools themselves require maintenance but older swimming pools can be a huge money pit. The pump and motor may need to be replaced. The foundation could crack. There could be leaks everywhere. The headache of managing that is not worth the benefits of enjoying a pool in my opinion.

If you do buy an older home, make certain you are given a comprehensive home warranty policy that covers the pool and it's associated parts preferably from American Home Shield or another reputable company (the policy will between $700-$1000 per year).

[azriverfan.]

Originally Posted by Master Shake

The downside of new/nerwer builds tend to be HOA's, smaller lots, undeveloped and unknown areas/neighborhoods, much further out from downtown, etc.

True but keep in mind what "older" in the Phoenix Metro means....1990's homes are considered old here and most 90's and even 80's built homes would be considered new in most cities. I agree with everything else you said